Gold prices in Pakistan have recorded a notable surge, reflecting both strong domestic momentum and powerful global drivers. With rising geopolitical uncertainty, expectations of monetary policy easing, and sustained investor demand for safe-haven assets, precious metals particularly gold, continue to command attention. This week’s price action underscores gold’s enduring role as a hedge against macroeconomic and financial volatility.

As of today, gold prices in Pakistan stand at elevated levels across all major purity categories:

• Gold per ounce (24K): PKR 1,318,237.57
• Gold per gram (24K): PKR 42,387.06
• Gold per gram (22K): PKR 38,854.81
• Gold per gram (18K): PKR 31,790.30

Daily, gold has increased by PKR 12,841.87 per ounce, marking a 0.98% rise compared to yesterday’s rates (Monday, 19 January 2026). This sharp move highlights strong buying interest and bullish sentiment in the local market.

Several interconnected factors are contributing to the ongoing strength in gold prices:

1. Safe-Haven Demand

Heightened geopolitical tensions and persistent macroeconomic uncertainty are encouraging investors to seek refuge in gold. During periods of risk aversion, gold historically benefits from its perceived stability and store-of-value characteristics.

2. Expectations of US Federal Reserve Policy Easing

Market participants are increasingly pricing in the possibility of policy easing by the US Federal Reserve. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.

3. Central Bank Buying and ETF Inflows

Central banks around the world continue to add gold to their reserves, while exchange-traded fund (ETF) inflows are absorbing a significant portion of global supply. This structural demand provides a strong underlying support for prices.

In the international market, prices rose by $94.5, or 2.09%, closing at $4,595.4 per ounce on Friday after touching a record high of $4,650.50 per ounce earlier in the week. This global rally has directly translated into higher domestic prices in Pakistan.

Silver has also delivered an exceptional performance, gaining more than 11.5% over the week. However, after a parabolic rally, signs of profit-booking and consolidation have emerged in recent trading sessions.

Reports suggesting that the US administration will not impose tariffs on critical miners in the near term have helped stabilize prices. Silver’s dual role, as both a precious and industrial metal, continues to support its long-term outlook, with demand driven by technology, renewable energy, and electrification trends.

Analysts expect gold to maintain its upward momentum in the near term, supported by:

• Ongoing geopolitical risks
• Continued central bank accumulation
• Expectations of accommodative monetary policy

That said, short-term pullbacks and phases of consolidation are a normal part of any extended rally. Such corrections do not necessarily alter the broader bullish trend and are often essential for healthy price discovery.

Credit: Independent News Pakistan (INP)